Skip to main content

Diversity vs minority owned; what's the difference?

A question that comes up frequently is, “What's the difference between diversity versus minority owned business?”  

In the United States, minorities are African-American or Blacks, Mexican-Americans, Indian-Americans, Asian-Americans, Native Americans. In other countries, such as South Africa, it means something slightly different. In Australia, New Zealand, it means something different. In Canada, it means something different. 

In general, minorities, as a group, are country-specific and are considered to be underserved when compared to the majority. 

Originally women were lumped in with this group, which confused many people. They were eventually classified as a specific group so people understood women were a minority group. To avoid confusion, we identified women as Women Business Enterprises to distinguish this group from Minority Business Enterprises. You've probably heard of acronyms such as MBE/WBE or M/WBE to indicate these two distinct groups.

As we've evolved, we've moved away from MBE and WBE and have transitioned to diverse and or disadvantaged business enterprises (DBE). This transition allows the expansion to include other groups. Diverse now includes LGBTQ, veterans and the disabled as well as women and minorities. Of course, as you go from one country to another country, diverse may have different groups included, but clearly the intention is to create business opportunities for companies that have been underrepresented and underutilized in the corporate purchasing contracts. 

And this all makes sense right?

Here's where it gets crazy, businesses that have a widespread of diversity both within their organization AND as business partners always perform better.

Here's a practical example of how a corporation sees diversity.

Let's begin with a large city: London. Let's say that within London, only 15% of your business partners fall within the diversity category and 75% of your customers fall within the diversity category. This means only 15% of your resources represents what 75% of your clientele want. 

Does that sound like an efficient strategy?

I'll tell you- it's not. (and if it does sound efficient to you, you may want to rethink pursuing a corporate contract).

This is exactly why corporations are looking for diversely owned business owners (like yourself) to create strategic alliances.


Lena Charles said…
Transition management is the process of migrating knowledge, systems, and operating capabilities between an outsourcing environment to an in-house staff. Management de transition

Popular posts from this blog

Getting Business in Person

Today, we're going to discuss the secret to getting business at conferences, expos, meet-and-greets, any place where you are at forums where you get a chance to interact with representatives from corporations for some of the largest companies.           How many of you can identify with going to these events, walking up and down the hallways in these big convention centers, being excited about being able to get your product out there and let folks know about your wares? And you end up leaving and reflecting back on the day and saying, "Well, I got the website from 20 other companies, and I can fill out the supplier database, put my information in their supplier database, and when there's an opportunity, they'll reach out to me because I made such a connection with them."           Or they took your business card and said, "We'll have somebody follow up with you." Or you got the business card of everybody at the booth saying, "Hey, I just


  This blog is covering number four of the Ten Core Business Practices. There are three in one here: Financial Analysis is one, Reporting is two and Capital Management is number three. I’ll start this with a story. The first time I went into an executive position, it was for a and I had been promoted from a sales position. I was an officer in the company. If you don't know exactly what an officer of the company means, it's pretty much what you're doing as a small business owner. It means that you primarily have responsibility for a huge portion of the business; that you are the one that's being held accountable. And if you own the company, then you, by definition, are an officer of or principal as evidenced by your name on all of the legal documents according to your articles of incorporation. My boss at the time had a lot of confidence in me. But one of the things that he was always a stickler about was “did I know my numbers”? And you know, being a person that